Research On Optimization Of Enterprise A’s Cost Budget Management System Based On Activity-Based Costing

In today’s society,go with the fast expand of skill,the use of intellectualization and mechanization in China’s coal enterprises is also more and more extensive,the needs of enterprises in the traditional cost budget management has been difficult to meet.The traditional cost budget distributes the cost index to each department in a fixed way,which is only a simple statistics and cannot reflect the corresponding relationship between resources and costs.At the same time,the traditional way of cost budget can only calculate the financial indicators,when the enterprise managers to plan,and is unable to provide accurate and effective decision information,there are many defects,so the traditional cost budget to promote the long-term development of the mechanization of modern enterprise.The main body of this paper is A coal enterprise.The existing cost budget of this enterprise is compiled on the basis of the previous year’s cost,so it is not accurate to grasp the cost.Because activity-based costing can go deep into the process of operation and fundamentally manage the enterprise,the cost budget management of the enterprise is more accurate.Therefore,enterprise A should introduce ABC to optimize the defects in the current cost budget management and form A new cost budget management system.This article first proposed the activity-based costing method and the cost budget management and so on correlation theory,has carried on the comparison between the traditional budget and the activity-based costing budget,and enumerated in our country enterprise’s application.Secondly,in the context of enterprise A,there are many internal cost budget problems,so activity-based costing should be introduced.Then,by analyzing the business process of company A,after confirming the activity,activity center and cost driver,it designs A set of activity cost budget plan matching with company A,calculates the unit cost for company A in 2016,and controls and supervises the whole process.Finally,this paper proposes the safeguard measures in the implementation process of ABC budget.After A study in this paper,enterprise Aintroduced activity-based costing into its cost budget,which improved the accuracy of its cost budget management.This practice effectively controlled the cost and ultimately improved the benefit of enterprise A.